Effects of Federal Budget Directives on University Funding
From Dr. Melissa Gilliam, President,
Dr. Gloria Waters, University Provost and Chief Academic Officer,
and Nicole Tirella, Senior Vice President for Financial Affairs, CFO, and Treasurer
January 28, 2025
Dear Members of the BU Community,
As you’ve likely seen in the news, in the past week the new administration has issued executive orders affecting federal funding agencies. We are writing to update you on these directives and the steps the University is taking at this time. Below, we outline the current state of affairs, how you can keep abreast of the situation, and the University’s ongoing actions to support our community. Know that the University remains committed to supporting our campus community and researchers with federal grants.
On Monday, the US Office of Management and Budget (OMB) issued a memo imposing a temporary pause on all activities related to the obligation or disbursement of federal financial assistance. No new federal grants will be awarded and no new funding will be disbursed until the pause is lifted. It is important to note that earlier this afternoon, a federal judge blocked the OMB’s funding freeze until Monday, February 3. While we are uncertain of the outcome of this legal action, the University is working vigilantly to prepare for the freeze’s impact on our campus should the injunction be lifted.
In the event the OMB’s orders are allowed to proceed, agencies will have until Monday, February 10 to submit plans to OMB demonstrating compliance with recent executive orders, which you can find linked from the Office of Research website. In addition to the pause, the memo mandates that agencies designate a senior political appointee responsible for ensuring that federal financial assistance aligns with administration priorities. Agencies would also be required, to the extent permissible by law, to cancel any previously awarded grants that conflict with these priorities.
The memo covers a broad range of areas, and schools and organizations nationwide are assessing its potential impact. The Department of Education has stated that federal Pell Grants and direct loans under Title IV would not be affected. At the same time, we recognize that this pause would be disruptive to our research programs and represent a departure from previous norms.
The University remains committed to supporting everyone in our community during this transition, including faculty with federal grants. Should the pause be reinstated, no preemptive action would be taken on individual awards prior to February 10. Unless the sponsor has issued a stop-work order, researchers should continue conducting research on federal grants through the pause. We also understand that many researchers have concerns about specific grants and programs. Please send your questions to Sponsored Programs at ospera@bu.edu, and our Sponsored Programs team will compile them, provide responses, and develop FAQs around common issues.
Additional guidance is being released rapidly. We will continue to monitor the evolving situation and provide general updates on the Office of Research website. We also encourage you to check the Federal Relations website and sign up for their newsletter for the latest information.
Thank you for your patience and cooperation as we work through this temporary pause together.
Sincerely,
Melissa Gilliam
President
Gloria Waters
University Provost and Chief Academic Officer
Nicole Tirella
Senior Vice President for Financial Affairs, CFO, and Treasurer
Effects of Federal Budget Directives on University Funding – 1.28.25